Do you need a 4-Year Degree?

Do you need a 4-Year Degree? Presenter: Nelse Grundvig, ESC – LMI Division

Synopsis • It comes as no surprise that jobs that require no post-secondary education have higher rates of replacement (different person filling the same position) but this same group also has the highest percentage of jobs that were not previously filled: in essence a new job. While those occupations that require a 4-Year degree have more stability (fewer replacements), they also have the lowest growth rate of new jobs. Come and see how this information would help prospective students or dislocated workers who are considering post secondary education/training.

Things to Consider • When projecting jobs: • Need to consider the growth or decline of an industry. • Need to consider the “staffing pattern” • Need to consider technology changes • Need to consider the degree of turnover by occupation • Creation of new jobs, as well as replacing those who have done this job before

Education = Job Stability • Those jobs that require more education are less likely to undergo a change in staff. • The percentage of new jobs (not previously filled) decreases with education. • Likewise the percentage of replacement jobs (jobs where someone did fill the position) also decreases with education.

Something to Consider • When you fill a position that does not require any post secondary training, that position is more likely to have been previously filled by someone else. • Generally, as the educational requirements increase there is less likelihood of a person either filling a new position or one where someone had previously held the position or replacement job.

The Other Side of the Story…

Different Labor Markets • Internal Markets • Hire from within the organization • Rewards longevity • Implies a required understanding of culture, technology and business model • External Markets • Occupations are not firm specific • Rewards certification

Strategies Used for External Markets • If you have been dislocated and return to the same employer due to changing conditions, job security will remain suspect • Increase skills • Prepare to market one’s abilities without seniority (External Market) • Market soft skills and problem solving abilities • Obtain certification or other recognition

Strategies Used for Internal Markets • Internal markets often have a career path. • Required understanding of the work process, institutional rules or policies, in addition to developing needed technical skills that fulfills the next job • In addition, often times requires the picking or training of possible replacements

Replacement Jobs Strategies are more consistent with internal markets Employers have a benchmark (previous employees) to measure candidates abilities Job duties and work environment are fairly fixed New Jobs More consistent with external markets Position is being defined and is more subject to change than replacement jobs No internal benchmark to measure candidates Initiative, problem-solving and other soft skills are premium Replacement Jobs or New Jobs?

Different Tactics for Different Positions From an employers perspective: • What knowledge, skills, and abilities are required to perform the position? • What type of attributes would be best suited to the position? • Who is my target audience? • Would it be possible/appropriate to fill the position through redeployment? • If filling an existing vacant position • Has the job changed? (eg. new duties, new skills, new work area) • Is the position description still appropriate for the position designation and salary level, and if required, has it been updated? • If creating a new position • Does the draft position description accurately reflect the tasks and responsibilities of the new position? • Could the job be offered on a flexible basis? (eg. part-time/fractional or job share)

Implications • Job security generally increases as education increases • Compensation generally increases as education increases • However, the costs of becoming educated or trained include: • Lost opportunities presently (in hopes of more latter) • Training does not guarantee future positions. • Immediate payment for training (tuition, fees etc.) • A break in employment history that needs to be addressed when seeking new positions • For dislocated workers, employers generally desire targeted education or training as it relates to tasks that need to be done by staff

Salary By Education • While getting more education pays, the cost including lost opportunities needs to be considered.

BS or BA is not for everyone! • The average cost of attending a state university for 4.5 years is in excess of $47,500 ($18,700 if one excludes room and board). • In contrast, the Community College average cost for 4.5 years is under $6,000.

Do you need a 4-Year Degree?